OM Group Assignment:

Industry analysis (Real

Estate) and its Operations
Management applications

Submitted by Aakash Kamdar (141201)

Aakriti Shah (141202)
Aastha Manglik (141203)
Shivi Sharma (141251)

13/03/2015
NETWORK DIAGRAM
A project network is a graph (flow chart) depicting the sequence in which a
project's terminal elements are to be completed by showing terminal elements and
their dependencies. It is always drawn from left to right to reflect project
chronology.

CRITICAL PATH METHOD

The critical path method (CPM) is a step-by-step project management technique for
process planning that defines critical and non-critical tasks with the goal of
preventing time-frame problems and process bottlenecks. The CPM is ideally suited
to projects consisting of numerous activities that interact in a complex manner.

PROJECT

EVALUATION

REVIEW

TECHNIQUE

(PERT)
Program Evaluation and Review Technique (PERT) is a scheduling method
originally designed to plan a manufacturing project by employing a network of
interrelated activities, coordinating optimum cost and time criteria. PERT
emphasizes

the

relationship

between

the

time

each

activity

takes,

the costs associated with each phase, and the resulting time and cost for the

anticipated completion of the entire project.

The three estimates to be obtained for each activity are
Most likely estimate (m) - estimate of the most likely value of the duration,
Optimistic estimate (o) - estimate of the duration under the most favorable
conditions,
Pessimistic estimate (p) - estimate of the duration under the most unfavorable
conditions.
The difference between the CPM and PERT is that the PERT is mainly used where
the time required for completion of each of the activities involved cannot be
accurately defined nor are the resources to be used for the activity readily available.
The events could however be readily definable. CPM technique is used in
construction projects based on the knowledge and experience of the past projects
for predicting accurately the time required for various activities during the
execution of the project. Time required for each activity is known and defined for
the project. Hierarchy of the construction project events are well defined and time
of completion of the same is also defined. The total time required for the given
project can be estimated based on this technique. CPM is an activity oriented
system as the times required for construction activities are estimated more
accurately. CPM is used where activities are definable and measurable and
minimum overall cost is of the utmost importance.

DUMMY ACTIVITY
A Dummy activity is an imaginary activity. It does not exist in the Project activities.
It is used in the network diagram to show dependency relationship or connectivity
between two or more activities. It is represented by a dotted arrow.

FLOAT
Float is the amount of time an activity can be delayed without delaying the project
end date. Float, sometimes called slack, is the amount of time an activity, network
path, or project can be delayed from the early start without changing the completion

date of the project.

Float is zero (0) on Critical path activities.
Using Critical Path Method (CPM) technique you can calculate Float. This
technique helps to get the longest path in the schedule network diagram, how can
soon or late an activity can start or how soon or late can activity can finish.
Total float is the difference between the finish date of the last activity on the
critical path and the project completion date. Any delay in an activity on the critical
path would reduce the amount of total float available on the project.
If activities that are not on the critical path have a difference between their early
start date and their late start date, those activities can be delayed without affecting
the project completion date. The float on those activities is called free float.
Independent float refers to the amount of time that an activity can be delayed
without affecting the earliest start of the preceding activity and the latest finish of
the succeeding activity in the project network.
If the activity is scheduled at its Early Start Time (EST) Free Float Early and Total
Float can be calculated:

Total Float (TF): The time the activity can be delayed without delaying the

end of the schedule or an imposed constraint. TF = LFT - EST Dur

Free Float Early (FFE): The time the activity can be delayed without
delaying the start of any succeeding activity (this is determined by the EE of

the (j) node). FFE = EE(j) EFT

Independent Float (IF): The amount of scheduling flexibility available on
the activity without displacing any other activity (before or after). It is the
float available to the activity regardless of the timing of either node. This is

calculated as EE(j) - EL(i) Dur

Free Float Late (FFL): The amount of scheduling flexibility available on the
activity when every operation is scheduled at its latest possible time. This is

the free float used for resource leveling on the back pass.
Interfering Float: This is the same value as End Event Slack but calculated
as TF - FF. The reason Interfering Float was calculated was so that it was
part of the activity record.

For the project that we have done for calculating the critical path and floats, we

followed the data given to us by the company we approached SAMVED

DEVELOPERS. For any construction procedure there is a predefined procedure
for its operations. That is shown in the precedence chart given below:

Activity

Preceeding activity

Duration

Survey
Excavation
Leveling
PCC
Footing
Pedestal
column cast
Filling
tie beam
sand filling
column casting (0)
slab casting (1)
Shuttering (1)
column casting (1)
slab casting (2)
Shuttering (2)
column casting (2)
slab casting (3)
Shuttering (3)
Masonry (1)
column casting (3)
slab casting (4)
Shuttering (4)
Masonry (2)
column casting (4)
slab casting (5)
Shuttering (5)
Masonry (3)
Masonry (4)
Masonry (5)
inside plaster (baking coat)
inside plaster (finishing coat)
door/window fittings
outside plaster
Flooring
bathroom/ kitchen
inside color
outside color

Survey
excavation
Leveling
PCC
Footing
Pedestal
column cast
Filling
tie beam
sand filling
column casting (0)
slab casting (1)
Shuttering (1)
column casting (1)
slab casting (2)
Shuttering (2)
column casting (2)
slab casting (3)
Shuttering (3)
Masonry (1)
column casting (3)
slab casting (4)
Shuttering (4)
Masonry (2)
column casting (4)
slab casting (5)
Shuttering (5)
Masonry (3)
Masonry (4)
Masonry (5)
inside plaster (baking coat)
inside plaster (finishing coat)
door/window fittings
outside plaster
Flooring
bathroom/ kitchen
inside color

1
3
1
1
5
2
2
4
5
1
3
15
12
3
9
12
3
9
12
10
3
9
12
10
3
9
12
10
10
10
4
3
5
30
4
10
7
10

Benefits of the Critical Path Method

The following are a few benefits of the critical path method:

It shows the graphical view of the project.

It discovers and makes dependencies visible.

It helps in project planning, scheduling, and controlling.

It helps in contingency planning.

It shows the critical path, and identifies critical activities requiring special
attention.

It helps you assign the float to activities and flexibility to float activities.

It shows you where you need to take action to bring project back on track.

Limitations/drawbacks of the Critical Path Method

The critical path method is an optimal planning tool, which always assumes
that all resources are available for the project at all time.

It does not consider resource dependencies.

There are chances of misusing float or slack.

Less attention on non-critical activities, though sometimes they may also

become critical activities.

Projects based on the critical path often fail to be completed within the
approved time duration.

Recommendations:

If its a big project, activity can be done parallel so as to cut down on the

time.
Cost cutting couldnt be analyzed because each element of construction

requires calculation of many individual materials cost. E.g. for an activity of

slab casting, cost can be calculated by first looking into the slab schedule for
the slab design, then the number of steel bars used and their diameter,
calculating the weight depending on the unit weight and similarly other
elements need to be calculated.